Event and Time
Event Description
A real estate agent employed by the owner of a property negligently caused the property to be burned down. In the aftermath, both the property owner and tenants sued the agent in tort and succeeded. However, the tenants also brought a claim against the owner for an alleged breach of their tenancy agreement, which was defended successfully by the owner. The case then revolved around whether the real estate agent should pay the owner’s costs associated with defending against the tenants’ contractual claim.
Application and Claims
- Plaintiffs (Tenants): Sought damages from the real estate agent for the fire incident and claimed against the owner for breach of tenancy agreement.
- Defendant (Real Estate Agent): Argued against liability for the contractual claims raised by the tenants and claimed costs related to defending against the tenant's claims.
- Cross-Claimant (Owner): Defended against the tenants' claims while also seeking costs from the real estate agent.
Judicial Decisions
- The real estate agent (Domain) was ordered to pay the tenants' costs.
- The owner was not liable for the tenants' costs in successfully defending the unsupported contractual claim.
- Specific costs were allocated on both an ordinary basis and indemnity basis depending on the timing of the claims.
Dispute Points and Legal Basis
Dispute Points
- Tenants’ Argument:
- Claimed the owner breached the tenancy agreement by not providing the right to quiet enjoyment due to actions leading to the fire.
- Owner's Defense:
- Successfully argued that the claim was manifestly untenable as the agent did not meet the definition of the "landlord's agent" within the Residential Tenancy Agreement.